Transdigm Group Financials
Transdigm Group (TDG) reported $8.8B in revenue for fiscal year 2025, up 11.2% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
TDG’s dominant mechanic is margin expansion that produces cash, despite a heavily leveraged balance sheet and large shareholder distributions.
Operating margin widened from35.2% in FY2021 to47.2% in FY2025, showing that more revenue reached operating profit after costs. By FY2025, operating cash flow of$2.0B nearly matched net income of$2.1B , so the earnings improvement is supported by cash generation rather than existing only on the income statement.
Short-term liquidity recovered as the current ratio rose from
FY2025 free cash flow was
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Transdigm Group's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Transdigm Group has an operating margin of 47.2%, meaning the company retains $47 of operating profit per $100 of revenue. This strong profitability earns a score of 95/100, reflecting efficient cost management and pricing power. This is up from 44.5% the prior year.
Transdigm Group's revenue grew 11.2% year-over-year to $8.8B, a solid pace of expansion. This earns a growth score of 77/100.
With a current ratio of 3.21, Transdigm Group holds $3.21 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 79/100.
Transdigm Group converts 20.6% of revenue into free cash flow ($1.8B). This strong cash generation earns a score of 88/100.
Transdigm Group scores 1.81, placing it in the grey zone between 1.81 and 2.99. The score is driven primarily by a large market capitalization ($66.3B) relative to total liabilities ($32.6B). This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Transdigm Group passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Transdigm Group generates $0.98 in operating cash flow ($2.0B OCF vs $2.1B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Transdigm Group earns $2.65 in operating income for every $1 of interest expense ($4.2B vs $1.6B). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Transdigm Group generated $8.8B in revenue in fiscal year 2025. This represents an increase of 11.2% from the prior year.
Transdigm Group's EBITDA was $4.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 17.9% from the prior year.
Transdigm Group reported $2.1B in net income in fiscal year 2025. This represents an increase of 21.0% from the prior year.
Transdigm Group earned $32.08 per diluted share (EPS) in fiscal year 2025. This represents an increase of 25.2% from the prior year.
Cash & Balance Sheet
Transdigm Group generated $1.8B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 3.4% from the prior year.
Transdigm Group held $2.8B in cash against $29.2B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Transdigm Group's gross margin was 60.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.3 percentage points from the prior year.
Transdigm Group's operating margin was 47.2% in fiscal year 2025, reflecting core business profitability. This is up 2.7 percentage points from the prior year.
Transdigm Group's net profit margin was 23.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.9 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
Transdigm Group invested $118.0M in research and development in fiscal year 2025. This represents an increase of 10.3% from the prior year.
Transdigm Group spent $500.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Transdigm Group invested $222.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 34.5% from the prior year.
TDG Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $10.0B | $8.8B+11.2% | $7.9B+20.6% | $6.6B+21.3% | $5.4B+13.2% | $4.8B-6.0% | $5.1B-2.3% | $5.2B+37.1% | $3.8B+8.8% | $3.5B+10.5% | $3.2B+17.2% | $2.7B+14.1% | $2.4B+23.3% | $1.9B+13.2% | $1.7B+41.0% | $1.2B |
| Cost of Revenue | $4.0B | $3.5B+7.7% | $3.3B+19.1% | $2.7B+17.7% | $2.3B+2.0% | $2.3B-7.0% | $2.5B+1.7% | $2.4B+47.7% | $1.6B+7.5% | $1.5B+5.3% | $1.4B+14.8% | $1.3B+13.8% | $1.1B+26.3% | $874.8M+16.0% | $754.5M+38.5% | $544.8M |
| Gross Profit | $6.0B | $5.3B+13.7% | $4.7B+21.6% | $3.8B+24.0% | $3.1B+23.3% | $2.5B-5.1% | $2.6B-5.8% | $2.8B+29.0% | $2.2B+9.7% | $2.0B+14.8% | $1.7B+19.2% | $1.4B+14.4% | $1.3B+20.8% | $1.0B+11.0% | $945.7M+43.0% | $661.2M |
| R&D Expenses | N/A | $118.0M+10.3% | $107.0M+1.9% | $105.0M+10.5% | $95.0M-10.4% | $106.0M-19.0% | $130.9M+12.1% | $116.8M+58.3% | $73.8M0.0% | $73.8M+25.9% | $58.6M+21.3% | $48.3M+14.2% | $42.3M+31.8% | $32.1M+15.1% | $27.9M+44.6% | $19.3M |
| SG&A Expenses | $1.1B | $945.0M-3.6% | $980.0M+25.6% | $780.0M+4.3% | $748.0M+9.2% | $685.0M-5.8% | $727.0M-2.8% | $748.0M+66.2% | $450.0M+9.1% | $412.6M+7.8% | $382.9M+19.0% | $321.6M+16.3% | $276.4M+8.6% | $254.5M+26.2% | $201.7M+50.9% | $133.7M |
| Operating Income | $4.6B | $4.2B+18.0% | $3.5B+20.8% | $2.9B+32.0% | $2.2B+31.0% | $1.7B-3.4% | $1.8B-9.1% | $1.9B+16.4% | $1.7B+11.6% | $1.5B+17.0% | $1.3B+18.0% | $1.1B+15.8% | $927.8M+23.8% | $749.5M+7.1% | $699.8M+43.7% | $487.1M |
| Interest Expense | -$1.3B | -$1.6B-22.2% | -$1.3B-10.5% | -$1.2B-8.2% | -$1.1B-1.6% | -$1.1B-2.9% | -$1.0B-19.8% | -$859.0M-29.6% | -$663.0M-10.0% | -$602.6M-24.5% | -$483.9M-15.5% | -$418.8M-20.4% | -$347.7M-28.4% | -$270.7M-27.7% | -$211.9M-14.4% | -$185.3M |
| Income Tax | $608.0M | $555.0M+11.0% | $500.0M+19.9% | $417.0M+59.8% | $261.0M+667.6% | $34.0M-60.9% | $87.0M-60.8% | $222.0M+825.0% | $24.0M-88.5% | $208.9M+15.0% | $181.7M-4.2% | $189.6M+33.9% | $141.6M-2.8% | $145.7M-10.6% | $162.9M+111.0% | $77.2M |
| Net Income | $2.1B | $2.1B+21.0% | $1.7B+32.0% | $1.3B+49.9% | $866.0M+27.4% | $680.0M-2.7% | $699.0M-21.5% | $890.0M-7.0% | $957.0M+60.3% | $596.9M+1.8% | $586.4M+31.1% | $447.2M+45.7% | $306.9M+1.4% | $302.8M-6.8% | $325.0M+88.8% | $172.1M |
| EPS (Diluted) | — | $32.08+25.2% | $25.62+16.3% | $22.03+64.4% | $13.40+28.7% | $10.41+16.2% | $8.96 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
TTM is the trailing twelve months, Q4 FY2025 through Q3 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
TDG Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $22.9B-10.5% | $25.6B+28.1% | $20.0B+10.3% | $18.1B-6.3% | $19.3B+5.0% | $18.4B+13.2% | $16.3B+33.3% | $12.2B+22.3% | $10.0B-7.0% | $10.7B+29.2% | $8.3B+22.9% | $6.8B+9.9% | $6.1B+12.6% | $5.5B+21.0% | $4.5B |
| Current Assets | $7.0B-30.1% | $10.0B+48.8% | $6.7B+19.3% | $5.6B-19.6% | $7.0B+1.0% | $7.0B+43.1% | $4.9B+33.0% | $3.7B+71.4% | $2.1B-27.2% | $2.9B+64.0% | $1.8B+5.7% | $1.7B+28.0% | $1.3B+25.7% | $1.1B+20.7% | $870.3M |
| Cash & Equivalents | $2.8B-55.2% | $6.3B+80.3% | $3.5B+15.7% | $3.0B-37.3% | $4.8B+1.5% | $4.7B+221.5% | $1.5B-29.2% | $2.1B+218.6% | $650.6M-59.0% | $1.6B+122.3% | $714.0M-12.9% | $819.5M+45.1% | $564.7M+28.2% | $440.5M+17.1% | $376.2M |
| Inventory | $2.1B+11.7% | $1.9B+16.1% | $1.6B+21.3% | $1.3B+12.4% | $1.2B-7.6% | $1.3B+4.1% | $1.2B+53.1% | $805.3M+10.2% | $730.7M+0.9% | $724.0M+22.4% | $591.4M+28.8% | $459.1M+11.0% | $413.6M+29.0% | $320.5M+20.8% | $265.3M |
| Accounts Receivable | $1.6B+17.1% | $1.4B+12.3% | $1.2B+27.2% | $967.0M+22.3% | $791.0M+9.9% | $720.0M-32.6% | $1.1B+51.6% | $704.3M+10.7% | $636.1M+10.4% | $576.3M+29.8% | $444.1M+26.4% | $351.3M+21.0% | $290.4M+23.2% | $235.8M+24.6% | $189.3M |
| Goodwill | $10.6B+1.9% | $10.4B+15.9% | $9.0B+4.0% | $8.6B+0.9% | $8.6B+8.6% | $7.9B+0.9% | $7.8B+25.7% | $6.2B+8.3% | $5.7B+1.2% | $5.7B+21.2% | $4.7B+32.9% | $3.5B+5.4% | $3.3B+10.2% | $3.0B+16.9% | $2.6B |
| Total Liabilities | $32.6B+2.3% | $31.9B+45.2% | $21.9B+0.3% | $21.9B-1.6% | $22.2B-0.6% | $22.4B+16.8% | $19.1B+36.6% | $14.0B+8.3% | $12.9B+13.6% | $11.4B+21.8% | $9.3B+12.4% | $8.3B+28.2% | $6.5B+52.9% | $4.2B+14.5% | $3.7B |
| Current Liabilities | $2.2B-65.6% | $6.3B+301.5% | $1.6B+10.7% | $1.4B-14.3% | $1.7B+2.9% | $1.6B+5.1% | $1.5B+70.8% | $900.4M+3.4% | $871.0M+15.7% | $752.6M+14.4% | $657.6M+12.2% | $585.9M+81.7% | $322.5M+37.9% | $233.9M+13.1% | $206.9M |
| Long-Term Debt | $29.2B+20.0% | $24.3B+25.7% | $19.3B-0.2% | $19.4B0.0% | $19.4B-0.1% | $19.4B+17.7% | $16.5B+31.7% | $12.5B+9.7% | $11.4B+14.6% | $9.9B+22.7% | $8.1B+12.1% | $7.2B+26.9% | $5.7B+58.4% | $3.6B+15.2% | $3.1B |
| Total Equity | -$9.7B-54.0% | -$6.3B-217.0% | -$2.0B+47.4% | -$3.8B-29.4% | -$2.9B+26.6% | -$4.0B-37.2% | -$2.9B-60.0% | -$1.8B+38.7% | -$3.0B-353.0% | -$651.5M+37.3% | -$1.0B+33.3% | -$1.6B-362.6% | -$336.4M-127.6% | $1.2B+50.3% | $810.9M |
| Retained Earnings | -$10.6B-44.1% | -$7.4B-180.9% | -$2.6B+33.0% | -$3.9B-5.6% | -$3.7B+15.0% | -$4.4B-39.7% | -$3.1B-38.9% | -$2.2B+29.5% | -$3.2B-177.9% | -$1.1B+33.2% | -$1.7B+20.1% | -$2.2B-114.1% | -$1.0B-245.7% | $689.2M+89.2% | $364.3M |
TDG Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $2.2B | $2.0B-0.3% | $2.0B+48.7% | $1.4B+45.0% | $948.0M+3.8% | $913.0M-24.7% | $1.2B+19.5% | $1.0B-0.7% | $1.0B+29.6% | $788.7M+15.4% | $683.3M+31.2% | $520.9M-3.7% | $541.2M+15.1% | $470.2M+13.6% | $413.9M+59.0% | $260.4M |
| Capital Expenditures | $271.0M | $222.0M+34.5% | $165.0M+18.7% | $139.0M+16.8% | $119.0M+13.3% | $105.0M0.0% | $105.0M+2.9% | $102.0M+39.7% | $73.0M+2.8% | $71.0M+61.5% | $44.0M-19.8% | $54.9M+60.7% | $34.1M-3.9% | $35.5M+40.8% | $25.2M+40.1% | $18.0M |
| Free Cash Flow | $1.9B | $1.8B-3.4% | $1.9B+52.1% | $1.2B+49.1% | $829.0M+2.6% | $808.0M-27.1% | $1.1B+21.4% | $913.0M-3.8% | $949.0M+32.2% | $717.7M+12.3% | $639.3M+37.2% | $466.1M-8.1% | $507.1M+16.7% | $434.7M+11.8% | $388.6M+60.4% | $242.4M |
| Investing Cash Flow | -$3.6B | -$595.0M+75.6% | -$2.4B-171.2% | -$900.0M-62.7% | -$553.0M+29.6% | -$785.0M-198.2% | $799.0M+120.5% | -$3.9B-468.6% | -$684.0M-138.3% | -$287.0M | N/A | N/A | N/A | -$502.4M+42.7% | -$876.3M+37.3% | -$1.4B |
| Financing Cash Flow | $1.4B | -$4.9B-254.5% | $3.2B+19918.8% | -$16.0M+99.3% | -$2.1B-2968.6% | -$70.0M-105.7% | $1.2B-45.8% | $2.3B+109.1% | $1.1B+175.2% | -$1.4B | N/A | N/A | N/A | $156.2M-70.4% | $527.2M-58.8% | $1.3B |
| Dividends Paid | $5.3B | $9.6B+372.5% | $2.0B+5263.2% | $38.0M-96.5% | $1.1B+1394.5% | $73.0M-96.2% | $1.9B+12.6% | $1.7B+2957.1% | $56.0M-97.8% | $2.6B+85951.7% | $3.0M-10.8% | $3.4M-99.8% | $1.5B-27.1% | $2.0B+60262.2% | $3.3M+17.4% | $2.8M |
| Share Buybacks | $1.8B | $500.0M | $0 | $0-100.0% | $912.0M | $0-100.0% | $19.0M | $0 | $0-100.0% | $389.8M+87.6% | $207.8M | $0-100.0% | $159.9M | $0-100.0% | $846K | N/A |
TTM is the trailing twelve months, Q4 FY2025 through Q3 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
TDG Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.1%+1.3pp | 58.8%+0.5pp | 58.3%+1.3pp | 57.1%+4.7pp | 52.4%+0.5pp | 51.9%-1.9pp | 53.8%-3.3pp | 57.1%+0.5pp | 56.6%+2.1pp | 54.5%+0.9pp | 53.6%+0.1pp | 53.4%-1.1pp | 54.5%-1.1pp | 55.6%+0.8pp | 54.8% |
| Operating Margin | 47.2%+2.7pp | 44.5%+0.1pp | 44.4%+3.6pp | 40.8%+5.6pp | 35.2%+0.9pp | 34.3%-2.6pp | 36.9%-6.6pp | 43.4%+1.1pp | 42.3%+2.4pp | 40.0%+0.3pp | 39.7%+0.6pp | 39.1%+0.2pp | 38.9%-2.2pp | 41.2%+0.8pp | 40.4% |
| Net Margin | 23.5%+1.9pp | 21.6%+1.9pp | 19.7%+3.8pp | 16.0%+1.8pp | 14.2%+0.5pp | 13.7%-3.3pp | 17.0%-8.1pp | 25.1%+8.1pp | 17.0%-1.5pp | 18.5%+2.0pp | 16.5%+3.6pp | 12.9%-2.8pp | 15.7%-3.4pp | 19.1%+4.8pp | 14.3% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 26.7%+5.4pp | 21.2% |
| Return on Assets | 9.0%+2.3pp | 6.7%+0.2pp | 6.5%+1.7pp | 4.8%+1.3pp | 3.5%-0.3pp | 3.8%-1.7pp | 5.5%-2.4pp | 7.8%+1.9pp | 6.0%+0.5pp | 5.5%+0.1pp | 5.4%+0.9pp | 4.5%-0.4pp | 4.9%-1.0pp | 5.9%+2.1pp | 3.8% |
| Current Ratio | 3.21+1.6x | 1.58-2.7x | 4.27+0.3x | 3.96-0.3x | 4.23-0.1x | 4.31+1.1x | 3.16-0.9x | 4.06+1.6x | 2.45-1.4x | 3.89+1.2x | 2.72-0.2x | 2.88-1.2x | 4.09-0.4x | 4.49+0.3x | 4.21 |
| Debt-to-Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2.95-0.9x | 3.85 |
| FCF Margin | 20.6%-3.1pp | 23.7%+4.9pp | 18.8%+3.5pp | 15.3%-1.6pp | 16.8%-4.9pp | 21.7%+4.2pp | 17.5%-7.4pp | 24.9%+4.4pp | 20.5%+0.3pp | 20.2%+2.9pp | 17.2%-4.2pp | 21.4%-1.2pp | 22.6%-0.3pp | 22.9%+2.8pp | 20.1% |
Note: Shareholder equity is negative (-$9.7B), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
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Where Transdigm Group Ranks
Frequently Asked Questions
What is Transdigm Group's annual revenue?
Transdigm Group (TDG) reported $8.8B in total revenue for fiscal year 2025. This represents a 11.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Transdigm Group's revenue growing?
Transdigm Group (TDG) revenue grew by 11.2% year-over-year, from $7.9B to $8.8B in fiscal year 2025.
Is Transdigm Group profitable?
Yes, Transdigm Group (TDG) reported a net income of $2.1B in fiscal year 2025, with a net profit margin of 23.5%.
What is Transdigm Group's EBITDA?
Transdigm Group (TDG) had EBITDA of $4.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Transdigm Group have?
As of fiscal year 2025, Transdigm Group (TDG) had $2.8B in cash and equivalents against $29.2B in long-term debt.
What is Transdigm Group's gross margin?
Transdigm Group (TDG) had a gross margin of 60.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Transdigm Group's operating margin?
Transdigm Group (TDG) had an operating margin of 47.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Transdigm Group's net profit margin?
Transdigm Group (TDG) had a net profit margin of 23.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Transdigm Group's free cash flow?
Transdigm Group (TDG) generated $1.8B in free cash flow during fiscal year 2025. This represents a -3.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Transdigm Group's operating cash flow?
Transdigm Group (TDG) generated $2.0B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Transdigm Group's total assets?
Transdigm Group (TDG) had $22.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Transdigm Group's capital expenditures?
Transdigm Group (TDG) invested $222.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Transdigm Group spend on research and development?
Transdigm Group (TDG) invested $118.0M in research and development during fiscal year 2025.
What is Transdigm Group's current ratio?
Transdigm Group (TDG) had a current ratio of 3.21 as of fiscal year 2025, which is generally considered healthy.
What is Transdigm Group's return on assets (ROA)?
Transdigm Group (TDG) had a return on assets of 9.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Transdigm Group's debt-to-equity ratio negative or not reported?
Transdigm Group (TDG) has negative shareholder equity of -$9.7B as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Transdigm Group's Altman Z-Score?
Transdigm Group (TDG) has an Altman Z-Score of 1.81, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Transdigm Group's Piotroski F-Score?
Transdigm Group (TDG) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Transdigm Group's earnings high quality?
Transdigm Group (TDG) has an earnings quality ratio of 0.98x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Transdigm Group cover its interest payments?
Transdigm Group (TDG) has an interest coverage ratio of 2.65x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Transdigm Group?
Transdigm Group (TDG) scores 72 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.